AdvancingInclusiveEntrepreneurshipandBusinessGrowthinUrbanManufacturing:
LessonsfromPortlandandCincinna2
EquityCommunityofPrac1ceUrbanManufacturingAlliance
TanuKumar&ChrisSchildt,Co-ChairsJanuary25th,2017
Today’sAgenda:• Welcomeandintroduc1ons
– Poll–Whereareyoucallingfrom?– 5minutes
• WhatistheEquityCoP?– TanuKumar&ChrisSchildt,EquityCoPCo-Chairs
– 10minutes
• Introduc1ontoToday’sWebinarandSpeakers– TracyGray,22CapitalGroup–Facilitator
– 5minutes
• PortlandCaseStudy– KatherineKrajnak,SeniorIndustryLiaison,PortlandDevelopmentCommission
– 10minutes
• Cincinna1CaseStudy– DarrinRedus,VicePresident,MinorityBusinessAccelerator,Cincinna1ChamberofCommerce
– 10minutes
• FacilitatedQues1onandAnswerSession– Chris,Darrin,Katherine,andTanu
– 15minutes
• AudienceQues1onandAnswerSession– Pleasetypeyourques1onsintotheQues1onsboxinyourControlPanel
– 15minutes
• Thankyou!
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
TheUrbanManufacturingAllianceUMA is a coali2on of 500 members across 145 ci0es that aresustainingandgrowingmanufacturing inurbancenters.ThroughGatherings, original research, policy development, and ourCommuni2es of Prac2ce, UMA is working to ensure that ci2escon2nuetobeplaceswherewemakethings.ManufacturingmaAers, and itma\ers deeply to the health andvitality of ci1es. A strong urban manufacturing base supportsinnova1on, sustains living-wage jobs that provide a crucialpathwaytothemiddleclass,promotesHerearesomewaysUMAisstrengtheningthemanufacturingsector.
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
UMA’sFourCoP’sinclude:• Equity• LandUsePolicyandRealEstateDevelopment• WorkforceDevelopment• LocalBranding
WhatisaCoP:Amechanismforourmemberstoeasilyaccesseachother’sexper2seanddrivethecrea2onofresources.
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
TheEquityCoPAdvisoryBoard
JoseCorona–DirectorofEquityandStrategicPartnerships,CityofOaklandTracyGray–ManagingDirector,The22CapitalGroupDarrinRedus–VicePresident,Cincinna1USARegionalChamberofCommerce,MinorityBusinessAcceleratorMichelleThong–BusinessDevelopmentOfficer,CityofSanJoseAndrewBeideman–Associate,RWVentures,Chicago
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
www.prattcenter.net/eie
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Photo: Michael Silberstein
INCLUSIVE ENTREPRENEURSHIP IN PORTLAND
UMAWebinarKatherineKrajnakPortlandDevelopmentCommission
STRATEGICPLANALIGNMENT
ObjecIve3
FosterWealthCrea1onwithinCommuni1esofColorandLow-IncomeNeighborhoods
HighGrowth
ScalableProductGrowth
GrowingSmallBusiness
MicroenterpriseBusiness
PATHSTOBUSINESSGROWTHRe
venu
e
Time
PDCPROGRAMSBusinessType PDCSupportProgramHighGrowth • StartupPDXChallenge
• InclusiveStartupFundScalableProduct • StartupPDXChallenge
• InclusiveStartupFund• IncreaseProject• A&OPeertoPeer
GrowingSmallBusiness
• IncreaseProject• MicroenterpriseandSmall
BusinessDevelopmentProgramMicroenterprise • MicroenterpriseandSmall
BusinessDevelopmentProgram
OURAPPROACH• Havingdirectrela1onships
withminorityentrepreneurstounderstandtheiruniquebarriers
• Thinkingdifferentlyabouthowgovernmentcanhelpentrepreneurs
• Facilita1ngpeer-to-peerlearning
• Inves1nginpeopletogrownextgenera1onmentors&leaders
JoyDavis,Design+CultureLabRoslynnTellvik&SookGoh,RAFTSyrups
ECOSYSTEMWIDECHANGE
GROWSTARTUPINSPIRE
• StartupWeekendLa1no
• PortlandStartupWeek
• Hispanicpros• PitchBlack• MercatusWebsite
• TiEOregon• StartupPDXChallenge
(IncubatePDX2017)• OregonEntrepreneur
Network• Microenterprise&
SmallBusinessDevelopmentProgram
• InclusiveStartupFund(ElevateCapital)
• IncreaseProject• PortlandSeedFund• AthleIc&Outdoor
PeertoPeer
INCLUSIVESTARTUPFUND
• $3millionpre-seedfund– $500KCityofPortland– $500KMultnomahCounty– $250KStateofOregon
• $25-$75Kinvestments• 6monthmentoringprogram• 30companies• Industrydiverseporjolio• Targetfounder
demographics– 40%Blackand/orLa1no– 40%women– 20%otherunderrepresented
TyronePoole,CEO,NoAppFee.com
TEAMSELECTION
• DiversePipeline• MentorProgram• FundStructure&
Capitaliza1on• Investment
Experience
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WHAT’SNEXTSMALLBUSINESSTECHNICALASSISTANCEPARTNERSHIP
BUILDING1000STRONG
GOALS
OUTCOMES
• Leadwithoutcomes• Improveservicedelivery• Facilitateinclusivecommunityofprac1ce
1000 Businessesstrongandstabilized
250Businessesachievegrowthmilestones
25Businessesscalingtodoubleortripletheirsize
100Tradedsectorstartupslaunchintothemarket
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QUESTIONS?
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Advancing Inclusive EntrepreneurshipStrategic Overview of
The Minority Business Accelerator
Cincinnati USA Regional ChamberNovember 9, 2016 1
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Our Mission
To accelerate the development of sizable minority businesses and
strengthen and expand the regional minority entrepreneurial community.
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Why Is This Important?
• By 2050, Ethnic Minorities will represent half of U.S. Population
• Today, roughly half of all pre-school age children represent ethnic minorities
• America is living longer with more projected retirees than workers contributing to Social Security
• Widening Economic Disparities (unemployment, income, wealth, etc.) threaten entire financial/economic system
• Accelerated Globalization
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
What Are The Disparities?
• Whites have 13X the net worth of Blacks & Hispanics (largest gap since 1989)• Over the past 25 years, the wealth gap has nearly tripled according to Brandeis University
$139 $141
$17 $11 $16 $14
2010 2013
Wealth Gap Widens ($K)White Black Hispanic
Pew Research Center report released 12/14
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
What Are The Disparities?
• Minority households' median income fell 9% between 2010 and 2013, compared to a drop of only 1%for majority households
• Despite increases in business starts and revenues, Black owned businesses generate less than 1% of U.S GDP, and less than 4% when factoring in Hispanic owned firms
• Only 1 in 18 African American & Hispanic firms > 1 employee versus 1 in 5 for majority firms
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Black Americans Hispanic Americans White Americans
Unemployment Rate
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Black Americans Hispanic Americans White Americans
Jobless and not looking for work or working part-time
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Driving Realities & Opportunity
• Economic Inclusion has become a national imperative
• Cities/Regions/Businesses across the country more aggressively adopting inclusion strategies
• National Foundations and federal government aggressively partnering with leading organizations and communities
• Unique talent/business attraction/retention opportunity
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Brief Historical Profileof Accelerator
� Founded in 2003
� Product of Cincinnati Action Now (CAN) Commission
� Emphasis on African American- & Hispanic-owned businesses
� Address well-documented economic disparities by stimulating high growth entrepreneurship and job creation
� 2004 Portfolio consisted of 20 firms with average revenues of $6.7 million
� Early “Spending” from area corporations with local minority firms of ~ $100 million at inception
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
3,500+jobs
created
Current State
32high
performing minority
businesses
9different industry
categories
$1B aggregate
annual sales
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Industry Distribution
Current State
$31Million avg. annual sales/firm
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
MBA Brands
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Our 2016 Goal Setters
11
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Our 2016 Goal Setters
12
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
5 Year Growth Objectives & BHAG
• Increase Aggregate Annual Revenues of Portfolio by:
$1 Billion
• Create:
3,500 additional jobs
13
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Increase Aggregate Annual Revenues by $1 Billion
• Enhanced engagement with Portfolio Companies
• Deepen partnering efforts with Goal Setters
• Catalyze a robust high growth pipeline
• Support minority business attraction efforts
General approach
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Increase Aggregate Annual Revenues by $1 Billion
• New markets, product lines, exporting, “pivoting”
• M&A, Joint Ventures – majority/minority
• Deepen understanding/positioning for equity capital
• Continue capacity and capital readiness efforts
Strategies & Tactics – (Portfolio Firms)
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
• Identify new opportunities for Portfolio Companies
• Identify industry verticals with minimal/no MBE representation
• Identify core strategic needs of each Goal Setter
Optimize efforts with Goal Setters
Increase Aggregate Annual Revenues by $1 Billion
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Create 3,500 Additional Jobs
• By-product of growing larger scale MBEs
• Disproportionate impact on underserved communities
• Intentional focus on challenged populations
• Leverage with foundations and philanthropic partners
• Unrecognized partner in the war on poverty
Impact & Realities
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
18
Accelerator Portfolio Companies/Pipeline Firms (CMBC)
9 Business Assessments9 S.W.O.T Analysis9 Capital Readiness9 Capacity Building9 Client Readiness9 Strategic Introductions
The AcceleratorBusiness Acquisitions
DivestituresBusiness Creation
New ContractsJoint Ventures
Majority/Minority DealsEquity Financing
(Business Attraction/Relocation)
(Talent Attraction/Retention)
Corporate Partners/Goal Setters
9 Identifying Spend Goals/Opportunities9 Leveraging “Business Case” for Inclusion9 Strategic Sourcing/Partnering Needs9 Optimization of new/existing MBE vendors9 Industry Verticals with little/no MBE Spend9 Client Succession Planning Strategies
Visual Snapshot
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
Thank you
19
QuesIon&AnswerSessionToaskaques1ontypeyourquesIonunderthe“Ques1on”sec1ononyourcontrolpanelandwe
willreadyourques1ontothegroup.Pleaseincludeyourorganiza1onwithyourques1on.
TanuKumar
ChrisSchildt
AdvancingInclusiveEntrepreneurshipandBusinessGrowth
DarrinRedus
TracyGray
KatherineKrajnak
What’sNext?TheEquityCoPwillcon1nuetotellthestoriesofinclusion
acrosslanduseandrealestatedevelopments,workforce,advancedmanufacturing,policycrea1on,andmore.
Anddon’tmissUMA’snextprogram!TheWorkforceCommunityofPrac0ceWebinar:
“StrategiesandPrac1cestogetYouthonManufacturingShopFloors”Tuesday,February28that2pmEST
Signupatbit.ly/ShopFloors
AdvancingInclusiveEntrepreneurshipandBusinessGrowth